[E-Daily Reporter Jeong Yun-ji ] On the 7th, the owner of a 99-square-meter unit in the Leaders Foret complex at Naritjae 1-dong, Naseong-dong, Sejong City, decided to raise the asking price by 50 million won from the original 1.2 billion won. This decision came in response to the government’s plan, announced four days earlier, to relocate central administrative agencies to Sejong. Kim Ji-eung, the licensed real estate agent handling the listing, said, “Since the government’s announcement, the sentiment in the Sejong real estate market has shifted from a buyer’s market to a seller’s market,” adding, “Transactions were virtually nonexistent, but one property was already sold on Saturday.”

The Sejong real estate market is abuzz. This follows the government’s announcement of the relocation of administrative agencies—including the Ministry of Justice and the Ministry of Gender Equality and Family—to Sejong. Starting with the relocation of these two agencies in early 2027, the National Police Agency, the Public Prosecutors’ Office, and the Major Crimes Investigation Agency are also expected to move to Sejong, leading to the relocation of up to 20,000 people, including employees of these agencies and their families. All eyes are on whether this will bring a wave of optimism to the previously frozen Sejong real estate market.

According to government sources on the 9th, the government plans to finalize the list of agencies to be relocated to Sejong by the end of the year. As news of the government’s plan spread, real estate agencies in Sejong have been receiving a steady stream of inquiries over the past week from people looking to list or find rental and sale properties. Mr. Kim, a licensed real estate agent in Saerom-dong, said, “We’ve been getting calls from sellers who want to put their homes on the market while this opportunity lasts.”

Apartment prices in Sejong had been in a slump until just before the announcement of the agency relocation. According to the Korea Real Estate Board, Sejong’s apartment sales prices had fallen by a cumulative 0.73% year-to-date as of the fifth week of August (as of August 31). This stands in contrast to the same period last year (1.53%), when prices were on the rise. During the same period, prices nationwide rose by 2.5%, and in Seoul by 7.56%.

Changes in the market began with asking prices. An 84-square-meter unit in the Saetum 6 Complex Hillstate Major City in Saerom-dong, which had been trading at an average of 940 million won over the past three months, now has an asking price of up to 1 billion won. Similarly, for a 99-square-meter unit in the Gaja 12 Complex Jungheung S-Class Centum Park Phase 2 in Jongchon-dong, while the average transaction price was 513.75 million won, asking prices have risen to as high as 930 million won. For jeonse (lump-sum lease) contracts, asking prices 30 to 40 million won higher than previous transaction prices have also appeared.

Market observers predict that while actual transaction prices remain to be seen, there is ample room for price increases, compounded by a shortage of supply. According to the Korea Real Estate Board and Real Estate R114, the number of apartment units scheduled for occupancy in Sejong from July of this year through June 2028 is only 1,122, with the majority concentrated in the first half of 2028. In particular, analysts predict that rents for jeonse and monthly lease properties will rise further due to the shortage of supply. Kim, a licensed real estate agent, said, “There are only two or three monthly rent and jeonse listings per complex.”

In the past, the Sejong real estate market has also fluctuated significantly due to policy expectations. In 2020, when the Democratic Party reignited discussions about relocating the administrative capital, apartment prices in Sejong rose 42.37% over the course of a year, recording the highest rate of increase nationwide.

However, as the discussion died down, the market quickly froze. In some complexes, units are changing hands at prices about 300 million won lower than their previous peaks. An 84-square-meter unit in Gaja Village Complex 5 in Jungchon-dong, which peaked at 830 million won in 2020, has recently fallen to around 500 million won.

Consequently, there is a growing sense on the ground that caution is needed regarding whether the government’s announcement will lead to a sharp rise in housing prices similar to those seen in the past. A licensed real estate agent in Dodam-dong said, “While expectations are gradually being reflected in prices,” he added, “residents are skeptical, wondering, ‘Aren’t we being fooled again?’”

Experts also predict that prices must be monitored until people actually move in. Nam Hyuk-woo, a researcher at Woori Bank’s Real Estate Research Institute, said, “This is an opportunity to expect a substantial population influx into Sejong City,” but added, “For this to lead to actual residency and family relocations, not only must government offices be relocated, but residential infrastructure—such as educational and commercial facilities—must also be provided.”